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Are Aerospace Stocks Lagging Heico (HEI) This Year?

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The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Heico Corporation (HEI - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Aerospace sector should help us answer this question.

Heico Corporation is a member of the Aerospace sector. This group includes 64 individual stocks and currently holds a Zacks Sector Rank of #10. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Heico Corporation is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for HEI's full-year earnings has moved 3.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, HEI has gained about 31.7% so far this year. Meanwhile, the Aerospace sector has returned an average of 31.2% on a year-to-date basis. This shows that Heico Corporation is outperforming its peers so far this year.

Another Aerospace stock, which has outperformed the sector so far this year, is Kratos (KTOS - Free Report) . The stock has returned 228.5% year-to-date.

Over the past three months, Kratos' consensus EPS estimate for the current year has increased 6.5%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Heico Corporation is a member of the Aerospace - Defense Equipment industry, which includes 38 individual companies and currently sits at #96 in the Zacks Industry Rank. Stocks in this group have gained about 31.9% so far this year, so HEI is slightly underperforming its industry this group in terms of year-to-date returns. Kratos is also part of the same industry.

Heico Corporation and Kratos could continue their solid performance, so investors interested in Aerospace stocks should continue to pay close attention to these stocks.


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